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The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma

November 12, 2018 Bilal 0

The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma https://ift.tt/2JzTsVk The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma Author/Editor: Paolo Cavallino ; Damiano Sandri Publication Date: November 2, 2018 Electronic Access: Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Summary: We provide […]

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International Yield Curves and Currency Puzzles

November 12, 2018 Bilal 0

International Yield Curves and Currency Puzzles https://ift.tt/2JK4UOk International Yield Curves and Currency Puzzles NBER Working Paper No. 25206 Issued in November 2018 NBER Program(s):Asset Pricing, International Finance and Macroeconomics The depreciation rate is often computed as the ratio of foreign and domestic pricing kernels. Using bond prices alone to estimate these kernels leads to currency puzzles: the inability of models to match violations of uncovered interest parity and the volatility of exchange rates. One cannot use information in bonds alone because exchange rates are not spanned by bonds. This view of the puzzles is distinct from market incompleteness. Incorporating exchange […]

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The Pricing of FX Forward Contracts: Micro Evidence from Banks’ Dollar Hedging

October 16, 2018 Bilal 0

The Pricing of FX Forward Contracts: Micro Evidence from Banks’ Dollar Hedging https://ift.tt/2INEVER The mechanisms that the authors identify are directly relevant to the current policy debate concerning global funding markets and the procyclicality of the U.S. dollar with respect to the broader financial markets and the real economy. In particular, they show that when a shock affects one segment of the funding market it is transmitted to broader financial markets in ways that are shaped by global banks’ foreign-exchange management, including their dollar-hedging behaviors and direct FX funding structures. These findings have important implications for financial-stability-risk monitoring, systemic risk, […]

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InoueRossiRevised2018.pdf

September 19, 2018 Bilal 0

InoueRossiRevised2018.pdf https://ift.tt/2PS8qbb Publish via Google Docs September 19, 2018 at 08:30PM https://ift.tt/2PS8qbb

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Systemic Banking Crises Revisited

September 19, 2018 Bilal 0

Systemic Banking Crises Revisited https://ift.tt/2CUk0Rr Systemic Banking Crises Revisited Author/Editor: Luc Laeven ; Fabian Valencia Publication Date: September 14, 2018 Electronic Access: Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file Link to data for this title Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Summary: This paper updates the database on systemic banking […]

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Finance and Econ From the Web: Night lights measure growth, why are rates so low, are bankers liberals or conservatives….

September 19, 2018 Bilal 0

I thought I’d have a separate “Best Of the Web” devoted to economics and finance. Below I’ve found 30 articles and academic papers on macro and finance. Some are easy reads and others are denser, but I’ve summarised each one. Oh, if you come across anything interesting that I’ve  missed, then flag it to me and I’ll include it in my next list.  Enjoy! North and South Korea at night , 1992 vs 2008

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A Lesson On What Drives the US Dollar (Bilal)

September 4, 2018 Bilal 0

My day job is forecasting currencies and I’ve written lots and lots of papers on this topic over the years. I thought I’d experiment with showing my analysis in a different way, hence this animation! Let me know what you think

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Decoding Currency Crises

September 4, 2018 Bilal 0

Decoding Currency Crises https://ift.tt/2C8A2GZ Brazil invests little and is running a fiscal deficit of 9% of GDP, whereas Argentina invests a lot and is gradually consolidating its public finances. So why is Argentina the one that’s in trouble with the currency markets? SANTIAGO – Imagine two countries. Country A has a fiscal deficit of slightly over 5% of GDP, while country B shows a gaping hole of nearly 9%. Moreover, until recently A’s public debt barely exceeded 50% of GDP, while B’s public debt has been shooting up and will soon reach 90% of domestic output. Spencer Platt/Getty Images Aug […]

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Trump’s Policies Will Displace the Dollar

September 4, 2018 Bilal 0

Trump’s Policies Will Displace the Dollar https://ift.tt/2NOhSLO The benefits that the US reaps from having the world’s main international currency are diminishing with the rise of the euro and renminbi. And now President Donald Trump’s misguided trade wars and anti-Iran sanctions will accelerate the move away from the dollar. NEW YORK – Back in 1965, Valéry Giscard d’Estaing, then France’s Minister of Finance, famously called the benefits that the United States reaped from the dollar’s role as the world’s main reserve currency an “exorbitant privilege.” The benefits are diminishing with the rise of the euro and China’s renminbi as competing […]